Existence and optimality of Cournot-Nash equilibria in a bilateral oligopoly with atoms and an atomless part (Q2021803): Difference between revisions

This paper considers the mixed bilateral oligopoly model, that is, a mixed economy with large traders, represented as atoms, and small traders, represented by an atomless part. Noncooperative exchange is formalized as in the Shapley window model. For this model, a general existence proof of a Cournot-Nash equilibrium that allows one of the two commodities to be held only by atoms, is provided. Then, it is shown that a Cournot-Nash allocation is Pareto optimal if and only if it is a Walras allocation.